How the highest price is worked out
Three limits apply at once, and the answer is the highest price that passes all three.
- Cash: your cash must cover the equity, which is the price minus the loan, plus the purchase tax. The bank does not finance the tax, and the tax rises with the price.
- The loan ceiling: Directive 329 limits the loan to 50% of the value for a foreign resident and 75% for a qualifying resident buying a sole home, as last updated on 30 June 2026. It applies to the lower of the appraisal and the contract price. Directive 329 uses the residency and population-register definition in section 16A of the Land Taxation Law. An Israeli citizen abroad can be a foreign resident, while a foreign citizen in Israel can be a resident. Passport alone does not decide. Ask the bank to confirm your classification.
- The repayment share: repayments may not pass 50% of income, a hard cap. Above 40% the bank must hold more capital, so you can choose either. The longest term is 30 years.
What is not counted
Legal, appraisal and bank costs come on top of the equity and the purchase tax. The cash figure here leaves them out, so the price shown is the most your cash covers before those costs.
The interest rate is illustrative, not a quote. Your bank sets the rate, and a higher rate lowers the loan your income can carry.
A bank's own credit policy can sit below the directive's ceiling, especially for income earned abroad, so the price here is a maximum and a bank's offer may be lower.
Questions about what you can afford
How much apartment can I afford in Israel?
It depends on three limits at once: your cash, the loan ceiling for your buyer profile and the share of your income a repayment may take. With ₪3,958,899 in cash and ₪60,000 of net monthly income, a foreign resident reaches ₪6,800,000 at an illustrative 5% over 30 years: a loan of ₪3,400,000, equity of ₪3,400,000 and purchase tax of ₪558,899. The repayment is about ₪18,252 a month.
What limits how much I can borrow?
Two things, and the lower one applies. Directive 329 limits the loan to 50% of the value for a foreign resident and 75% for a qualifying resident buying a sole home, and repayments may not pass 50% of income. The calculator says which of the two stops your loan. Directive 329 uses the residency and population-register definition in section 16A of the Land Taxation Law. An Israeli citizen abroad can be a foreign resident, while a foreign citizen in Israel can be a resident. Passport alone does not decide. Ask the bank to confirm your classification.
Does my cash have to cover the purchase tax as well?
Yes. The bank does not finance purchase tax, so your cash pays the equity and the tax together. The tax rises with the price, and legal, appraisal and bank costs come on top and are not counted here.
Should I use the 40% line or the 50% cap?
Repayments may not pass 50% of income, a hard cap. Above 40% the bank must hold more capital, so the 40% line is the more cautious choice and the default. The 50% cap shows the most the directive allows, and a bank may offer less.
Can I use the calculator if I am buying without a loan?
Yes. Leave the income empty or enter 0 and no loan is counted, so your cash covers the whole price and the purchase tax. If you do want a loan, enter the net income a bank would count, and expect to document income from every country where you earn.
Is this the amount a bank will lend me?
No. It is arithmetic on the published limits. A bank's own credit policy can sit below the directive's ceiling, especially for income earned abroad, and the rate here is an illustration. Ask for an approval in principle: under Directive 451 a bank must answer a mortgage request within five business days.
Sources
Each link opens the publication the figures on this page were read from.
- Bank of Israel, Directive 329 on housing-loan limits, version 13 (circular 2852)
- Bank of Israel, circular 2840 amending Directive 329
- Bank of Israel, questions and answers on Directive 329
- Bank of Israel, Directive 451 on housing-loan procedures
- Finance Family, documents banks request from non-residents
- Israel Tax Authority, Execution Instruction 1/2026 (purchase tax)
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